Question
1. Gareth owns 1 share of stock A and 1 share of stock B. In 1 year from today, the total value of his holdings
1. Gareth owns 1 share of stock A and 1 share of stock B. In 1 year from today, the total value of his holdings is expected to be 133.33 dollars. Stock A is currently priced at 62.29 dollars, has an expected return of 7.71 percent, and is expected to pay a dividend of 6.16 dollars in 1 year from today. Stock B is currently priced at 66.62 dollars and is expected to pay a dividend of 5.79 dollars in 1 year from today. What is the expected return for stock B? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
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